19.06.202615:59:18UTC+00European Stocks Inch Down from Record

European equity benchmarks edged lower from record highs on Friday as the recent decline in sovereign bond yields came to a halt. The Euro STOXX 50 slipped 0.3% to 6,302, while the STOXX Europe 600 fell 0.2% to 636.

Risk sentiment was dampened after Iran postponed the opening of talks with the United States on its nuclear program and the war, interrupting a recent spell of de-escalation that had pressured energy prices and helped fuel a rally in European equities earlier in the week. Even so, efforts to normalize trade flows through the Strait of Hormuz continued, with reports indicating that tankers were again transiting the key shipping corridor.

Luxury stocks retreated, with LVMH, Hermès, and Ferrari losing between 2.3% and 2.5%. The technology sector also weakened, as ASML declined 1% and Prosus fell 2.2%. German carmakers posted modest gains after BMW’s profit warning and guidance cut earlier in the week, though Volkswagen dropped 4.5% as the stock traded ex-dividend.

For the week, the Euro STOXX 50 advanced 1.9%, and the STOXX Europe 600 added 0.4%.